Sumitomo Metal Mining : FY2018 Capital Expenditure and Total Investment Plans

May 10, 2018

Press Release

Sumitomo Metal Mining Co., Ltd.

FY2018 Capital Expenditure and Total Investment Plans

Sumitomo Metal Mining Co., Ltd. (SMM) plans to undertake a total of 63.0 billion yen on capital expenditures, on a groupwide basis during the 2018 fiscal year (April 1, 2018 - March 31, 2019). The total investment represents a 15.5% decrease from that of FY2017. A breakdown by business segment is as shown below.

(Unit: billion yen)

FY2017 (actual result)	FY2018 (current forecast)
	First half	Second half	Total
Mineral Resources	32.4	8.9	8.5	17.4
Smelting & Refining	19.2	9.0	9.5	18.5
Materials	19.0	10.1	11.7	21.8
Others	4.0	2.1	3.2	5.3
Total	74.6	30.1	32.9	63.0

(Depreciation)

(46.9)

(24.2)

(24.5)

(48.7)

*Interest base

The following large-scale capital expenditures are scheduled on a consolidated basis in FY2018:

• 1. Expansion of lithium nickel oxide production: 11.2 billion yen (total outlay: 22.0 billion yen)

• 2. Chromite Recovery Business: 1.0 billion yen (total outlay: 3.5 billion yen)

• 3. Development of ore body confirmed in 2012 at Hishikari Mine: 0.6 billion yen (total outlay: 3.7 billion yen)

With regard to the Development of Hishikari Mine mentioned above, timing of commencement of ore mining has been changed to 2022 (initial plan: 2018), and the total capital expenditure of the project has also been changed to 3.7 billion yen (initial plan: 3.2 billion yen) due to the delay of the construction. These changes will have only a minor impact on our business performance.

Address inquiries concerning this Press Release to: Sumitomo Metal Mining Co., Ltd.

Hidenobu Tasaki, Public Relations & Investor Relations Department TEL: [phone]